Dear All,
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Finally Nifty broken down from the raising channel. Now two supports 5964 and 5870 along with the Gap left at 5854 area. Since for a quite long time Nifty moving up with -ve div, even nifty bounces now, its a chance to sell on raise since these supports got tested. Lets see.
>>>Ranbaxy<<<
The country's biggest drugmaker, Ranbaxy Laboratories on Monday agreed to pay $500 million (around Rs 2,743 crore) to resolve fraud allegations made in a whistle-blower's lawsuit and federal criminal charges that the company sold adulterated drugs and lied about it to US regulators. This is the largest false claims case involving a generics drugs manufacturer.
Ranbaxy agreed to pay a criminal fine and forfeiture totalling $150 million and to settle civil claims for $350 million. The generic drugs at issue were manufactured at Ranbaxy's facilities in Paonta Sahib and Dewas, India. They include acne drug Sotret, epilepsy and nerve pain drug gabapentin, and antibiotic ciprofloxacin.
Ranbaxy, in papers filed in Federal court in Baltimore, admitted it had sold batches of drugs that were improperly manufactured, stored and tested. The company also pleaded guilty to making fraudulent statements to the Food and Drug Administration (FDA) about how it tested drugs at two of its Indian plants.
The US Department of Justice said the company acknowledged that FDA's 2006 and 2008 inspections of the Dewas facility found incomplete testing records and an inadequate stability programme, and manufacturing practices that didn't follow regulations.
Ranbaxy, majority-owned by Japan's Daiichi Sankyo Co Ltd, stopped selling drugs to the US markets while it fixed problems with its manufacturing procedures in the United States and India.
Arun Sawhney, MD, Ranbaxy said: "Today's announcement marks resolution of this issue. While we are disappointed by conduct of the past that led to this investigation, we strongly believe that settling this matter now is in the best interest of all of Ranbaxy's stakeholders". The conclusion of the Department of Justice investigation does not materially impact our current financial situation or performance, he added. In 2011, Ranbaxy had set aside $500 million to pay up a fine to US government for its faults. Ranbaxy USA also accepted that FDA's inspection of Paonta Sahib facility in 2006 found incomplete testing records.
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All my clients are short in Ranbaxy from last week. Break down on chart with big volume suggest the fall is not going to be a smaller one. Yesterdays Bad News definitely not good for stock. So lets wait and see. Cheers!!!
